Calian Reports Third Quarter Results: Financial Results as Expected

Calian Reports Third Quarter Results: Financial Results as Expected

Calian Technologies Ltd. has released it’s unaudited results for the third quarter ended June 30, 2011. Revenues for the quarter were $58.5 million, a 2% increase from the $57.6 million reported in the same quarter of the previous year. Net earnings were $3.5 million or $0.45 per share basic and diluted, compared to $3.8 million or $0.49 per share basic and diluted in the same quarter of the previous year. For the nine-month period ending June 30, 2011, the Company reported revenues of $171.2 million and net earnings of $9.8 million or $1.28 per share basic and diluted, compared to revenues of $162.8 million and net earnings of $10.4 million or $1.33 per share basic and diluted in the prior year.

"Results for the quarter were once again in line with management expectations with both divisions reporting revenues marginally above the same quarter last year. Our BTS division was negatively impacted by a slowdown in government spending leading up to, and following, the recent federal election. Both our short term staffing and longer term outsourcing segments continue to see excellent opportunities, which bodes well for longer term growth potential. Revenues in the SED division were consistent with those achieved in the same quarter last year as well as with recent quarters as both project related revenue and manufacturing revenues have remained steady. Recently signed contracts are expected to fill the revenue gap associated with the wind down of projects nearing completion", stated Ray Basler, President and CEO.

"As expected, overall margins have decreased from last year. Margins in the SED division are lower than last year due to the reducing mix of work associated with projects signed before the Canadian dollar strengthened significantly. Also, competitive pressures have served to tighten margins on new work. The BTS division's margins remain relatively steady, despite a business mix that is somewhat different from the prior year. We expect continued pressures on new opportunities as customers seek to reduce costs and competitors become more aggressive. That being said, we expect to maintain our win ratios by continuing to provide the quality service for which we are well known, priced accordingly", continued Basler.

Overall, while growth has been modest this quarter, we are proud of our accomplishments within a very competitive landscape, particularly during this period of continued worldwide economic uncertainty. We believe that our key markets will remain strong, although we recognize the potential impact due to government cost cutting initiatives. Ultimately, revenues realized will be dependent on the extent and timing of future contract awards as well as customer utilization of existing contracting vehicles. We remain confident in our ability to achieve results within the range of our previously issued guidance. Accordingly, we expect revenues for 2011 to be in the range of $220 million to $230 million and net earnings per share in the range of $1.55 to $1.80 per share.